A daily briefing on European HR, labour law and compliance developments for SME HR teams across the EU, UK, Switzerland and the Nordics.
Top story: Commission launches infringement proceedings over Single Permit Directive
The European Commission announced infringement proceedings against 17 member states for failing to transpose the revised Single Permit Directive (2024/1233) by the 21 May 2026 deadline. The countries named in the July infringements package include Belgium, Bulgaria, Germany, France, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Slovenia, Finland and Sweden. Each has received a letter of formal notice and has two months to respond with evidence of transposition or face referral to the EU Court of Justice.
The revised directive, adopted in 2024, simplifies and speeds up the procedure for granting non-EU nationals a combined work and residence permit. Key changes include a 90-day processing deadline (down from 120), the right for permit holders to change employer and sector with a notification procedure, and extended job-search periods of three to six months for workers who lose their jobs. In 2024, more than 4.6 million non-EU citizens obtained residence and work rights through the single permit procedure, according to Eurostat. Denmark and Ireland are exempt, having opted out of EU justice and migration policies.
What to do: If you hire non-EU workers in any of the 17 named countries, monitor your government’s transposition progress closely. The directive’s provisions on employer mobility, faster processing and worker protections will reshape how you sponsor and manage international hires. Begin reviewing your onboarding and sponsorship processes now so you’re ready when national legislation takes effect.
Also developing
Finland: A package of amendments to the Employment Contracts Act took effect on 1 June 2026, making fixed-term contracts more flexible. Employers may now conclude one fixed-term contract of up to 12 months without a justified reason, provided it is either the first employment relationship with that employee or at least five years have passed since the previous one ended. Both parties may terminate such a contract after six months. Separately, the statutory layoff notice period has been halved from 14 to seven days, and the post-employment re-employment obligation now applies only to employers with 50 or more employees. These changes follow the January 2026 reform that lowered the dismissal threshold from “weighty grounds” to a “proper reason” standard for person-related terminations. What to do: Update your Finnish employment contract templates to reflect the new fixed-term provisions. If you use layoffs as a short-term measure, ensure your payroll and HR systems account for the shorter seven-day notice period.
Germany: The coalition’s employment reform package, agreed on 2 July, is drawing significant opposition. A YouGov survey published in mid-July found 54% of respondents opposed the plan to extend fixed-term contracts without objective justification from two years to four years (with up to six renewals), while only 26% were in favour. The DGB trade union confederation and Verdi warned of creeping job precariousness, and demonstrations took place at automotive sites across the country on 9 July. The Ifo Institute has cautioned that the changes could disrupt career paths for younger workers. The legislative process is expected to conclude by November 2026, with final passage through the Bundestag and Bundesrat still required. What to do: No action is required yet, as the reforms remain a proposal. However, HR teams in Germany should track the legislative progress. If enacted, the changes would significantly expand your options for fixed-term hiring, but the political headwinds suggest amendments are possible before final passage.
EU-wide: Six weeks after the 7 June transposition deadline for the Pay Transparency Directive (2023/970), only four member states have completed national legislation: Italy, Slovakia, Lithuania and Malta, with Greece close behind. The Netherlands, Sweden, the Czech Republic and Denmark have confirmed a delayed implementation date of 1 January 2027. Most other member states are at various stages of drafting. The European Commission has stated that there will be no extension, no pause and no carve-out. From 8 June, the directive has direct legal effect against public-sector employers everywhere in the EU, meaning public-sector employees can already rely on its provisions even in countries that have not yet transposed. Private-sector employers are not subject to the directive’s obligations until national implementing legislation takes effect. What to do: If you are a public-sector employer in a country that has missed the deadline, the directive’s requirements on pay-range disclosure, pay-secrecy restrictions and gender pay gap reporting may already apply to you. Private-sector employers should use this window to audit pay data and prepare reporting structures, as national legislation will follow in most countries by late 2026 or early 2027.
On the radar
Belgium, 1 August notice period and cap (previously covered): From 1 August, a uniform one-week notice period applies during the first six months of employment for indefinite-term contracts whose performance starts on or after that date. Separately, for contracts entering into force from 1 July 2026, the statutory notice period on dismissal is capped at 52 weeks. Ten days to go.
UK, zero-hours contracts consultation (previously covered): The government consultation on reforms to zero-hours and similar contracts under the Employment Rights Act 2025 closes on 25 August 2026.
EU Platform Workers Directive (previously covered): Member states must transpose by 2 December 2026.
Sources
- The Local: EU launches legal action against 17 member states over new single permit rules (17 July 2026)
- EUbusiness: July 2026 EU infringements package, key decisions
- Finnish Government: Legislative changes to make fixed-term employment contracts more flexible (1 June 2026)
- DLA Piper: Finland reforms the Employment Contracts Act
- HPP Attorneys: Regulation on fixed-term employment contracts will change on 1 June 2026
- CMS: Labour and employment law 2026, the reform package for economic recovery and employment
- Orrick: German Government Reform Package, Part I, more flexibility for employers
- Ad Hoc News: German fixed-term contract overhaul faces public backlash as poll shows 54% opposition
- Lewis Silkin: EU Pay Transparency Directive 2026, no EU-level delay and no time for employers to wait (1 July 2026)
- Ius Laboris: EU Pay Transparency Directive, which countries have transposed (3 July 2026)
- Morgan Lewis: EU Pay Transparency Directive, the deadline for transposition has passed, what now (June 2026)
Europe HR Compliance Pulse is an informational summary of publicly reported legal and regulatory developments. It is not legal advice. Always confirm obligations for your specific situation and market with a qualified adviser.
